[ParlTrack]

Proposal for a regulation
Recital 14 a (new)

(14 a) A person who enters into transactions or issues orders to trade which are constitutive of market manipulation may be able to establish that his reasons for entering into such transactions or issuing orders to trade were legitimate and that the transactions and orders to trade were in conformity with accepted practice on the regulated market concerned. A sanction could still be imposed if the competent authority established that there was another, illegitimate, reason behind these transactions or orders to trade;

2012/05/11
Committee: ECON

Jean-Paul GAUZÈS

Proposal for a regulation
Recital 14 b (new)

(14 b) A practice that is accepted in a particular market cannot be considered applicable to other markets unless the competent authorities of such other markets have officially accepted that practice;

2012/05/11
Committee: ECON

Jean-Paul GAUZÈS

Proposal for a regulation
Article 4 a (new)

Article 4 a 1. Competent authorities shall be able to establish an accepted market practice on the basis of the following criteria: (a) the level of transparency of the relevant market practice to the whole market; (b) the need to safeguard the operation of market forces and the proper interplay of the forces of supply and demand; (c) the degree to which the relevant market practice has an impact on market liquidity and efficiency; (d) the degree to which the relevant practice takes into account the trading mechanism of the relevant market and enables market participants to react properly and in a timely manner to the new market situation created by that practice; (e) the risk inherent in the relevant practice for the integrity of, directly or indirectly, related markets, whether regulated or not, in the relevant financial instrument within the whole Union; (f) the outcome of any investigation of the relevant market practice by any competent authority or other authority, in particular whether the relevant market practice breached rules or regulations designed to prevent market abuse, or codes of conduct, be it on the market in question or on directly or indirectly related markets within the Union; (g) the structural characteristics of the relevant market including whether it is regulated or not, the types of financial instruments traded and the type of market participants, including the extent of retail investors participation in the relevant market. 2. Before establishing an accepted market practice competent authorities shall notify ESMA and other competent authorities of the intended accepted market practice and provide details of the assessment made according to the criteria laid down in paragraph 1. Notification of the intention to establish an accepted market practice shall be made not less than 6 months before the accepted market practice is intended to take effect. 3. Within 3 months following receipt of the notification, ESMA shall issue an opinion to the competent authority in question assessing the compatibility of each accepted market practice with the requirements established in paragraph 1 and specified in the regulatory technical standards adopted pursuant to paragraph 5 and considering whether the establishment of the accepted market practice would not lead to threaten the market confidence in the European Financial market. The opinion shall be published on ESMA's website. 4. Where a competent authority establishes an accepted market practice contrary to an ESMA opinion issued according to paragraph 3, it shall publish on its website within 24 hours of establishing the accepted market practice a notice fully explaining its reasons for doing so. 5. In order to ensure consistent application of this Article, ESMA shall develop draft regulatory technical standards specifying the process conceived under paragraphs 2 and 3. ESMA shall submit those draft regulatory technical standards to the Commission by XXX. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010. 6. Competent authorities shall review regularly the market practices they have accepted, in particular taking into account significant changes to the relevant market environment, such as changes to trading rules or to market infrastructures. 7. ESMA shall publish on its website a list of accepted market practices and in which Member States they are applicable. 8. ESMA shall monitor the application of the accepted market practices and shall submit an annual report to the Commission on how they are applied in the markets concerned. 9. Accepted market practice established by competent authorities before the entry into force of this regulation can continue to apply in respective Member States concerned until these have been submitted to ESMA and ESMA has issued its opinion thereon, pursuant to paragraphs 2 and 3. Competent authorities shall submit the accepted market practices to ESMA within 3 months after the regulatory technical standards under paragraph 5 are adopted by the Commission.

2012/05/11
Committee: ECON

Jean-Paul GAUZÈS

Proposal for a regulation
Article 5 – paragraph 1 – point 6 a (new)

6 a. "Accepted market practices": means practices that are reasonably expected in one or more financial markets and are accepted by the competent authority in accordance with Article 4a;

2012/05/11
Committee: ECON

Jean-Paul GAUZÈS

Proposal for a regulation
Article 8 – paragraph 1 – point a – indent 2

– it secures, or is likely to secure, the price of one or several financial instruments or a related spot commodity contracts at an abnormal or artificial level; unless the person who entered into the transactions or issued the orders to trade establishes that his reasons for so doing are legitimate and that these transactions or orders to trade conform to accepted market practices on the market concerned

2012/05/11
Committee: ECON

5 Amendments of Jean-Paul GAUZÈS related to 2011/0295(COD)

ParlTrack - 2011-2024